The UK Treasury has attempted to fan out tensions gripping horse racing as the sport goes ahead with its planned strikes.

In an unprecedented move for British horse racing, four race meetings scheduled for today, 10 September, were taken off the racing calendar as a protest against a potential betting tax hike.

Tax rise still on the table

Racing stakeholders were left in dismay after the government announced that it is considering to merge the three types of gaming tax into the single Remote Gaming Duty at 21%.

Aimed at filling a gap in next year’s budget, this move would raise the Pool Betting and General Betting Duty up from the current cap of 15%.

But HM Treasury has now come out with a statement, condemning all speculations around the proposal as “irresponsible” and adding unnecessary tension to the debate.

Dan Tomlinson, Exchequer Secretary to the Treasury, said: “The Chancellor has been clear that speculation on tax rises, which is what this is, is not only inaccurate, but also irresponsible. We have not announced an increase in the tax on horserace betting, and racecourse betting currently gets a 100% tax break which we have no plans to change.

“We know horseracing is part of the cultural fabric of the country, that’s why it’s the only sector that benefits from a government-mandated levy. Our wider gambling consultation is only about levelling the playing field and simplifying the system, and we are working closely with the industry to understand any potential impacts.”

Strikes have formed two industry camps

Racing’s strikes have also caused an internal divide within the gambling industry itself, with the UK’s Betting and Gaming Council (BGC) taking a strong stance against industrial action.

An advocate for the betting sector and an active mediator with policymakers, the trade body scolded the protests and asserted that the racecourses which organised them should’ve first consulted with betting operators.

“We are disappointed that racing has chosen to proceed with its decision to reschedule racing fixtures today,” the BHA reiterated its stance this morning. 

“While we understand the concerns within the sport, the decision was taken without consultation with betting operators…and it will ultimately disrupt customers who expected to enjoy fixtures today.

“Racing and betting have a long-standing, symbiotic relationship, one cannot thrive without the other. Further disruption risks frustrating millions of racing fans and undermining the revenues that sustain jobs, communities, and the long-term future of the sport.”

When will the final say be?

With consultations on the tax increase still ongoing, the final decision will be made public as the Autumn Budget gets announced on 26 November.

A recent cabinet mini reshuffle by PM Keir Starmer saw James Murray becoming the Treasury Chief Secretary, the number two to Chancellor of the Exchequer Rachel Reeves who is responsible for the budget. 

While Murray has been publicly vocal in support of the horse racing industry before, it remains to be seen whether this support would translate into official policy as well.